Washington Trust Bank

Designed for your busy schedule, our fraud prevention tips take only a minute read.

Know Your Payments Risks

With the majority of our Fraud Wise tips focusing on cyber security, you may be interested to know that electronic payments are still far more secure than checks. The results of the 2012 AFP Payments Fraud and Control Survey summarize the risks of the various payment channels. Thanks to the Association for Financial Professionals, we are able to share some of their key findings.

In 2011, two-thirds of organizations had experienced attempted fraud*

  • Checks were the primary payment target, with 85% of affected organizations reporting a fraud attempt involving checks
  • ACH debit was the next most targeted payment channel, cited by 23% of organizations
  • Other payment channels targeted by fraudsters were:
    • Corporate/commercial cards, 20%
    • Consumer credit/debit cards, 12%
    • ACH credits, 5%
    • Wire transfers, 5%
  • 74% of organizations that were victims of fraud experienced no financial loss
  • 14% of organizations that were victims of a check fraud attempt suffered a financial loss resulting from the fraud
  • 17% of organizations that were victims of ACH fraud experienced a financial loss as a result of the fraud

12% of organizations that experienced a payment fraud attempt in 2011 reported the attack involved compromised user IDs/passwords or other access credentials.*

The full 2012 AFP Payments Fraud and Control Survey is packed with interesting data and great ideas for account controls that mitigate fraud.

*Association for Financial Professionals (AFP), 2012 AFP Payments Fraud and Control Survey